What is your CIBIL score and how does it work?
Your CIBIL score is a three-digit number, ranging from 300 to 900, that acts as a measure of your credit worthiness. The score is derived after taking into consideration your credit history, details found in your CIBIL report, and is maintained as a record by credit information company Transunion CIBIL.Your lender checks your CIBIL score to verify your ability to repay the loan before granting you approval. The closer you are to a credit score of 900, better the chances of getting easy approval on your loan. A score closer to 300 is considered poor.It may seem tedious to maintain a good credit score. However, if you adhere to healthy financial practise by paying credit card bills, EMIs, and loans in time, make only genuine credit enquiries, then your credit score will strengthen. The score in your credit report holds importance when you apply for credit card, loan, house for rent etc